SK Group has officially partnered with Amazon Web Services (AWS), the world’s leading cloud services provider, to construct the nation’s largest artificial intelligence (AI) data center. Located strategically in the Ulsan Mipo National Industrial Complex, this facility is designed to house an unprecedented 60,000 graphics processing units (GPUs), marking it as the largest AI-dedicated data center ever announced in South Korea.
Industry sources on June 15 revealed that SK Group plans to host a launch event later this month, with groundbreaking for the ambitious project slated for August. The development will unfold in phases, commencing with a 41-megawatt (MW) facility targeted for completion by November 2027.
A subsequent phase will see capacity expand to 103MW by February 2029. Ultimately, SK Group envisions scaling the facility to a colossal 1 gigawatt (GW), with the ambitious goal of establishing it as the largest AI data center hub across Northeast Asia.
The joint investment from SK Group and AWS in this groundbreaking project is expected to run into several trillion won. SK Telecom and SK Broadband, both key affiliates spearheading SK Group’s AI infrastructure initiatives, had previously announced plans to invest 3.4 trillion won (approximately $2.4 billion) in AI by 2028. A substantial portion of this investment will be channeled into this pivotal joint venture with AWS.
The project also enjoys robust support from other SK affiliates, including SK Gas and SK hynix, underscoring a unified group-wide commitment. Industry officials anticipate AWS alone will commit approximately $4 billion (about 5.47 trillion won) to the development.
The planned 60,000-GPU facility will significantly surpass the scale of any existing or projected AI infrastructure in South Korea. To put this into perspective, the government’s National AI Computing Center is currently expected to deploy 15,000 GPUs, a mere quarter of the capacity SK Telecom is preparing to install.
While AWS already operates a data center in Seoul and began construction on another in Incheon last year, the selection of Ulsan for this new facility marks a notable shift from the capital region, a traditional hub for major tech projects.
This strategic choice is largely attributed to the site’s proximity to SK Gas’s liquefied natural gas (LNG) combined heat and power plant. This offers a significant advantage by providing ready access to the substantial and stable energy supply crucial for operating a 100MW-class data center. Analysts emphasize that securing a reliable and scalable power source was a critical factor in the location selection.
The project is poised to serve as a cornerstone of SK Group’s overarching AI strategy. At the Mobile World Congress (MWC) 2025 earlier this year, SK Telecom President and CEO Ryu Young-sang articulated the company’s vision, identifying the development of “customized AI data centers” as a central pillar of its business roadmap.
He further explained that this model is designed to offer tailored AI infrastructure solutions to a diverse clientele, ranging from global technology giants to domestic startups. During his briefing, Ryu specifically highlighted plans for a 60,000-GPU facility, built in collaboration with a major global player – now confirmed to be AWS – as a flagship example of this innovative strategy.
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